May 192015

Pradhan Mantri Suraksha Bima Yojana (PMSBY)

As we tell you – The Pradhan Mantri of India is all set to launch another flagship social security scheme: Pradhan Mantri Suraksha Bima Yojana (PMSBY) – An accidental Death and Disability insurance scheme. Here a detail review on benefits and methodology of scheme is being done. Hope this will assist you all in taking your financial decision as to go for scheme or not.

Target Beneficiary

There are two aspects of PMSBY that make it different in offering and approach.

  1. It is the sheer size and depth of inclusion to bring and get covered the maximum number of people under this scheme.
    1. Today, if an earning member of a family becomes permanently disabled or dies an accidental death, his or her family faces a life in penury and hardship, with no protection or support from any institution or group. By joining the PMSBY scheme and by paying a nominal premium of Rs. 12/- per person per year, he or she will get an insurance cover for a sum of Rs. 2,00,000/-  in case of accidental death or permanent full disability or a sum of Rs. 1,00,000/- (one lakh) in case of partial but permanent disability. The scheme will be valid for a year and it can be renewed every year.All the payments will be directly credited to the beneficiary’s account with no scope for leakages.


Any person between the age of 18 and 70 with a savings bank account and Aadhaar Card can join the scheme.

A person will need to fill out a simple form, mentioning the name of the nominee and linking the Aadhaar Card to the bank account. The person will need to submit the form each year before 1st June to continue the scheme.

With this, the account can be easily activated and the entire premium due will be auto-debited from his or her account.

In other words, all a person has to do is to open a bank account and then ensure the availability of at least Rs. 12/- before 1st June of each year to ensure automatic renewal of the scheme.

A person has the option to go in for a long-term inclusion under the scheme by instructing the bank to auto-renew the scheme every year.

Cost Benefits analysis of scheme

The following benefits are available under the scheme:

Particular of cost Amount of cost in Rs per annum Particulars of benefits Sum assured
Premium per annum per member Rs. 12 Death Rs. 200,000/-
In joint holder of account shall pay their premium separately. Total or irrecoverable loss of both eyes or loss of use of both hands or feet or loss of sight of one eyes and loss of use of hand or foot Rs. 200,000/-
Total or irrecoverable loss of sight of one eyes or loss of use of one hand or foot Rs. 100,000/-

The cover under this scheme is in addition to cover under any other insurance scheme the subscriber may be cover under.

Tax Benefit

The entire premium paid by the subscribers will be tax free under Section 80C. Furthermore, all the proceeds received up to Rs. 1,00,000/- (one lakh) will be tax exempt under Section 10(10D).

For all the proceed amounts exceeding Rs. 1,00,000/-, a TDS at the rate of 2% of the total proceeds will apply if Form 15H or Form 15G is not submitted to the insuring agency.

Further information / assistance

For further information on Pradhan Mantri Suraksha Bima Yojana (PMSBY), please log onto: or One can also call the National toll free numbers: 1800 110 001 / 1800 180 1111.

May 152015

Social security In India


After successful launch of Jan Dhan Yojana, Prime Minister Modi had last week launched the ‘Pradhan Mantri Jivan Jyoti Bima Yojana’, ‘Pradhan Mantri Suraksha Bima Yojana’ and the ‘Atal Pension Yojana’ in Kolkata; another step forward to secure more population under their financial inclusion programme.

Objective of schemes

The above schemes have been announced targeting 80% of the people who are not covered by any social security measure. Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana were simultaneously launched at 115 locations throughout the country.

While the ‘Pradhan Mantri Suraksha Bima Yojana’ (PMSBY) and the ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’ (PMJJBY) provide insurance cover in the unfortunate event of death by any cause or disability due to an accident, the ‘Atal Pension Yojana’ (APY) addresses the income and security needs of the aged.


In the first seven days of the trail-run, banks have enrolled 50.5 million people including 4.2 million from West Bengal Even over 50 lakh people have enrolled for the schemes in the last 2 days.

The detail of above schemes is explained below:

Pradhan Mantri Jeevan Jyoti Bima Yojana

This insurance scheme will offer a renewable one-year life cover of Rs. 2 lakh with an annual premium of Rs. 330. This offer can be availed by all savings bank account holders in the age group of 18-50 years. An individual with multiple savings bank accounts would be eligible to join the scheme through one account only with Aadhaar as the primary know-your-customer (KYC) criterion.

The nominee will get the benefits of the scheme in case of the death of the policy holder. Initially, to be covered for the period from 1 June, 2015 to 31 May, 2016, subscribers will be required to enroll and give their auto-debit consent by 31 May, 2015.

Pradhan Mantri Suraksha Bima Yojana

This insurance scheme is also worth Rs. 2 lakh at an annual Premium of Rs. 12. All savings bank account holders in the age group of 18-70 years are eligible for it. It will cover death or permanent disability due to accident.

Eligibility to join the scheme is only through one savings bank account and premium will be deducted from it through ‘auto-debit’ facility annually between 1 June, 2015 and 31 May, 2016.

Atal Pension Yojana

The Atal Pension Yojana will focus on the unorganized sector and provide subscribers a fixed minimum pension of Rs.1, 000, Rs. 2,000, Rs. 3,000, Rs.4,000 orRs. 5,000 per month, starting at the age of 60 years, depending on the contribution option exercised on entering at an age between 18 and 40 years. The minimum age for joining the scheme is 18 years and the maximum is 40 years with a minimum contribution period of 20 years. Contributions would vary from as little as Rs. 48 a month for a Rs 1,000 pension to Rs 248 a month for a pension of Rs 5,000 per month

Where to get forms

All you have to do is to fill up the application form, which can be accessed from these websites - Alternatively, forms can also be procured from all banks